Tax measures to solve difficulties for enterprises

The Government Office has announced the Conclusion of Deputy Prime Minister Vuong Dinh Hue at the meeting on draft Resolution about tax measures to solve difficulties, obstacles, boost the enterprise’s development.

The announcement clearly states that the draft Resolution is in line with the policy stipulated in Resolution No. 35/NQ-CP dated 16 May 2016 on supporting and developing enterprises by 2020. Contents of the draft Resolution have been commented by the concerned ministries and agencies and evaluated by the Ministry of Justice. However, there are still many different opinions on the draft Resolution.

In order to promptly complete the draft Resolution and report to the Government at its regular meeting in October 2016, the Deputy Prime Minister requested the Ministry of Finance to promptly complete the draft Resolution in accordance with Resolution No. 35/NQ-CP; To select the urgent contents to be immediately removed and applied in the shortest period, including reports on current issues of the land rent policy applicable to enterprises.

In addition, the Deputy Prime Minister asked the Ministry of Finance to report to the Government on the amendment and supplement to current regulations for long-term implementation.

Proposed solutions applied to small and medium enterprises, including start-up enterprises, information technology enterprises must be consistent with the provisions of the draft Law on supporting small and Medium Enterprises. In cases the Law on supporting small and Medium Enterprises do not prescribe the criteria and tax incentives, the provisions of such contents should be supplemented under the draft Resolution for timely implementation in 2017 and 2018. The Ministry of Finance shall report to the Government to submit to the National Assembly on amendment and supplement to the tax laws for long-term implementation.

There is no provision on offsetting income from real estate transfer with losses from production and business activities when determining income subject to corporate income tax. The Ministry of Finance shall review and evaluate the implementation of the Law on Corporate Income Tax No. 32/2013/QH13, including this issue to propose to the Government for amendment and supplement of the Law if necessary.

The Deputy Prime Minister agrees on the policy of remission of late payment for taxpayers who supply goods and services which are paid by the state budget.

This Resolution does not specify provisions on debt remission, tax freezing, late payment, fines for dissolution, bankruptcy because it is not related to enterprises’ issue. In case of necessity, the provisions shall be regulated in other documents.

The corporate income tax incentives for investment and renovation of old apartment buildings will be 15%, if they are accounted separately and implemented in 2017 and 2018.

The Deputy Prime Minister also asked for a clarification on the impact of the solution to reduce personal income tax to 50% on income from salaries and wages of individuals working in the field of high technology, application of high technology under agriculture sector and processing agricultural products to solve difficulties for businesses. In case of necessity, it shall be applied only to individuals working in the hi-tech sector in small and medium enterprises, sectors and prioritized business lines in 2017 and 2018. In long-term, the Law on Personal Income Tax should be amended and supplemented appropriately.

Source: Ministry of Industry and Trade portal